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Iren Group: The Italian Multi-Utility Powerhouse Born from a Century of Municipal Legacies
I. Introduction: A Tale of Five Cities, One Hundred Years in the Making
On a crisp January morning in 1903, the gas lamps of Reggio Emilia flickered to life under municipal ownership for the first time. The Officina del Gas e dell'Elettricità had just begun illuminating the streets of this Emilian city—actually anticipating by a few months the famous "Giolitti Law" that would transform Italian public services forever. The men who lit those lamps could not have imagined that their small municipal workshop would eventually become part of something far larger: a multi-billion euro utility empire stretching across northern Italy.
Today, Iren is the leading multi-utility in the Northwest and one of Italy's leading operators, active in electricity, gas, district heating, integrated water and environmental services management, and integrated solutions for energy efficiency. The Group operates in a multi-regional area with 10,583 employees, over 2.2 million energy customers, 2.9 million residents served in integrated water cycle management, and over 3.8 million in environmental services.
The financial scale is equally impressive. In an energy scenario increasingly linked to external events, such as the continuation of conflicts in Ukraine and the Middle East, in 2024, Iren Group managed to confirm its ability to grow and consolidate its results. EBITDA, at over 1.27 billion euro, shows growth of 6.5% compared to 2023. For the first half of 2025, the Board of Directors approved results showing solid growth in all main economic indicators: +14% EBITDA thanks to the contribution of all business lines and the consolidation of Egea Holding, +24% net profit and over 900 million in investments.
How did five municipal utilities—born from the early 1900s in the workshops and gas houses of Reggio Emilia, Parma, Turin, Genoa, and Piacenza—merge to become one of Italy's most powerful infrastructure companies? What does the story of consolidation in essential services teach us about building regulated infrastructure businesses that can survive two world wars, decades of political transformation, and a complete restructuring of European energy markets?
The answer lies not in a single strategic genius, but in the accretion of capabilities, the patient assembly of assets, and the alignment of municipal, regional, and national interests over more than a century. This is the story of Iren: a company whose roots stretch back to gaslight and whose future stretches toward the circular economy and ecological transition.
II. The Giolitti Era and the Birth of Municipal Utilities (1903-1922)
The Revolutionary Moment: Italy Discovers Municipal Socialism
To understand why Iren exists, one must first understand the political transformation sweeping through Italy at the turn of the twentieth century. Giolitti introduces important reforms at a social level, such as mandatory insurance for work injuries; sets to 12 the maximum numbers of hours to work daily; the minimum age to start working is increased to 12; the nationalization of the telephone (1903) and railways (1905); the municipalization of transportation, the distribution of gas, water and electricity.
This wasn't merely bureaucratic reorganization—it was a fundamental reimagining of what cities could do for their citizens. Giovanni Giolitti, prime minister of Italy five times between 1892 and 1921, tried to integrate the PSI into the state through various social welfare plans and by introducing legislation that permitted the municipalization of local services, which local socialists took advantage of.
The "Giolitti Law" of 1903 gave Italian municipalities the legal framework to take over essential services from private concessionaires—often foreign companies that had operated gas works and early electrical systems since the mid-nineteenth century. For progressive mayors across northern Italy, this was an opportunity to assert local control, improve service quality, and create a new model of civic engagement.
Reggio Emilia: The Pioneer That Beat the Law
Among the municipality companies that have merged into what is now the Iren Group, the first to come into existence is the Officina del Gas e dell'ElettricitĂ (Workshop of Gas and Electricity), which has been lighting Reggio Emilia since 1 January 1903, even anticipating the "Giolitti Law" on municipality companies by a few months.
Reggio Emilia's forward-thinking municipal council had moved quickly—too quickly, in fact, for Rome to catch up. By the time the national legislature had codified the municipal utility model, Reggio Emilia was already running one. This pattern of Emilian pragmatism and institutional innovation would repeat itself throughout Iren's history.
Parma: Democracy Decides for Public Power
The City of Parma incorporated the new course introduced by the "Giolitti Law" and, following a city referendum, established the Azienda Energetica Municipale (AEM) (Municipal Energy Company) in 1905.
The Parma referendum marked something remarkable: direct democracy applied to utility ownership. Citizens voted to bring their energy supply under municipal control. By 1950, Parma's utilities had consolidated into the Azienda Municipalizzata ElettricitĂ Acqua Gas (AMEAG), and in 1965, AMEAG was transformed into the Azienda Municipalizzata di Pubblici Servizi (AMPS).
Turin: Industrial Powerhouse Electrifies
In 1907, the Azienda Elettrica Municipale (Municipal Electric Company) was founded in Turin for the production and distribution of electricity.
Turin in 1907 was the industrial heart of Italy—home to FIAT, which had been founded just eight years earlier. The city's electrical needs were exploding, and the municipal government moved to ensure reliable power supply wouldn't be left to foreign concessionaires.
AEM TORINO SpA is a local utility, listed in the stock exchange, operating in the sectors of electric energy, district heating, gas distribution and services sold to the municipality of Turin. The company's first major customer was Michelin, the French tire manufacturer that had established a factory in the city. From the beginning, Turin's municipal electric company was intertwined with the industrial economy.
Genoa: The French Connection Ends
Genoa's story differs from its Emilian and Piedmontese neighbors. The port city's gas supply had been controlled since 1857 by a French company, Union des Gaz. When the concession finally expired, the municipality moved to establish Italian control.
L'AMGA - Azienda Municipalizzata Gas e Acqua nacque a Genova nel 1922 con la sola attività di distribuzione del gas, entrando anche nel settore dell'acqua nel 1937, quando acquisì la gestione di alcuni acquedotti locali. Tra gli anni sessanta e gli anni settanta la società completò la metanizzazione dell'intera area di Genova.
AMGA's entry into water services in 1937 was particularly significant. With the gas company being entrusted with the management of the civic aqueduct and other facilities inherited from the annexed municipalities in Greater Genoa, the Azienda Municipalizzata Gas e Acqua (AMGA) (Municipalised Gas and Water Company) was born, opening in Genoa the experience of the public multi-service in gas and water, later extended to waste collection, local transportation, and urban maintenance.
This was the birth of the "multi-utility" model in northwestern Italy—a single municipal company managing multiple essential services. The logic was compelling: shared administrative overhead, coordinated infrastructure planning, and a single point of accountability for citizens.
Why Municipal Ownership Mattered
The municipal ownership model that emerged in early twentieth-century Italy wasn't simply ideological. It reflected practical realities:
Capital Requirements: Building electrical grids, gas networks, and water systems required massive upfront investment. Municipal bonds offered lower interest rates than private financing because they were backed by tax revenues and service fees.
Natural Monopoly Economics: These were networks—pipes in the ground, wires on poles. Competition would mean duplicating infrastructure, which made no economic sense. If monopoly was inevitable, municipalities preferred to own it themselves.
Democratic Accountability: Municipal ownership meant elected officials could be held responsible for service quality. When the lights went out, citizens knew exactly whom to blame.
Revenue Generation: Well-run municipal utilities generated surpluses that could fund other city services, effectively serving as local taxation by another name.
The downside would become apparent decades later: fragmentation. By the late twentieth century, Italy had over 100 regional water utilities and countless small municipal energy companies. Italy currently hosts over 100 regional water utilities. What had seemed like democratic localism began to look like inefficient duplication.
III. The Transformation Era: From Public Enterprises to Market Companies (1990-2007)
The Legislative Revolution That Changed Everything
For seventy years after the Giolitti reforms, Italy's municipal utilities operated in a comfortable stasis—public enterprises serving public purposes, insulated from market pressures and capital market scrutiny. Then came 1990.
The company's own history describes what happened with dark humor: "In 1990, an 'evil ogre' (art. 22 of Law 142) eliminated the Public or Municipal Enterprise from Italian law and introduced the Special Enterprise. Then another 'ogre' (Law 127 of 1997) also introduced the Joint Stock Company as an alternative to the Special Enterprise."
This wasn't just Italian domestic policy—it reflected European Union directives on liberalization of energy markets. Brussels wanted competition, and that meant ending the cozy municipal monopolies that had served northern Italy for nearly a century.
The Stock Market Beckons
The transformation from municipal enterprise to joint-stock company opened a crucial new possibility: access to public capital markets.
Trasformata in società per azioni nel 1995, nello stesso anno acquisì i servizi di depurazione e fognature, e nel 1996 venne quotata in Borsa. AMGA of Genoa became the first of the founding companies to list on the stock exchange, in 1996.
Turin followed shortly after. The company was "transformed into a joint-stock company in 1997 with the name Azienda Energetica Metropolitana Torino S.p.A., the company arrived at the stock market listing in 2000."
The tension between public ownership and private market dynamics that emerged in this era would never fully resolve. Municipal shareholders wanted reliable services and local employment; stock market investors wanted growth and returns. Managing these competing imperatives became central to utility management.
The First Wave of Consolidation: ENĂŚA Formation (2005)
While Turin and Genoa pursued their separate paths to public markets, the Emilian utilities recognized an opportunity in combination.
AGAC was set up from the Reggio Emilia municipal company. In 2005, AMPS, TESA and AGAC constituted ENìA. In 2007 ENìA was listed on the Stock Exchange.
The logic behind ENÌA was straightforward: three mid-sized utilities in the Emilia-Romagna region—Reggio Emilia's AGAC, Parma's AMPS, and Piacenza's TESA—could achieve scale economies by combining. They operated similar services in adjacent territories, spoke the same regulatory language, and shared cultural ties dating back to their Giolitti-era origins.
ENĂŚA S.p.A. was "born, uniting the municipal companies AGAC of Reggio Emilia, AMPS of Parma and Tesa of Piacenza to manage water and network services." The 2007 stock exchange listing gave the combined company access to capital for the growth strategy that would soon accelerate.
IV. The Mega-Merger: Birth of IRIDE and Then IREN (2006-2010)
The IRIDE Merger: Turin and Genoa Unite
While ENĂŚA was consolidating the Emilian utilities, an even larger combination was taking shape along the Piedmont-Liguria axis.
"Following an agreement between the Municipal Administrations of Turin and Genoa, on 31 October 2006 AMGA was incorporated into AEM Torino which simultaneously assumed the name of Iride S.p.A."
The strategic rationale was compelling: Turin's AEM brought deep expertise in electricity generation and district heating (by then serving over 55% of Turin homes), while Genoa's AMGA contributed gas distribution capabilities and water service expertise. Combined, IRIDE became a significant force in northwestern Italian utility markets.
But governance proved challenging. Multi-city municipal shareholders brought competing priorities. Turin wanted investments in its aging district heating infrastructure; Genoa sought expansion of water services. Neither city wanted to subordinate its interests to the other.
The Final Merger: IREN is Born (July 1, 2010)
On 1 July 2010, the merger project between ENĂŚA and IRIDE was completed and IREN SpA was born. The multi-regional group becomes a nationwide multi-utility, among the top operators in district heating, as well as a leader in the water sector, environmental services, gas and electricity.
The 2010 merger combined two already-merged entities—IRIDE (Turin + Genoa) and ENÌA (Reggio Emilia + Parma + Piacenza)—into a single multi-utility spanning three Italian regions. The deal created a company with approximately €4 billion in revenues and established a pay-out policy of 80%.
IREN was created on 1 July 2010 from the merger of Enìa into Iride and is at the top of national multi-utility companies with a prominent position in the different business areas, a balanced mix of regulated and quasi-regulated activities and unregulated activities, and a strong integration between upstream and downstream activities.
The choice of headquarters for the new company carried symbolic weight. Reggio Emilia—the smallest of the five founding cities but the first to establish municipal utilities back in 1903—became the official sede legale. Turin and Genoa maintained major operational centers. The dispersed structure reflected political compromise as much as operational logic.
Integration Challenges
Combining five legacy companies with more than a century of separate history created integration challenges that would take years to resolve. Different IT systems, contracting practices, labor agreements, and corporate cultures all needed harmonization.
Iren is a holding company headquartered in Reggio Emilia. The Parent company is responsible for strategic, administrative, development, coordination and control activities. The structure that emerged placed strategic functions at the holding company level while delegating operational management to four business unit companies.
V. The Acquisition-Led Growth Strategy (2015-2025)
With the foundational merger complete, Iren's leadership turned to external growth. The Italian utility landscape remained highly fragmented, presenting opportunities for a disciplined acquirer with capital access and integration capabilities.
Key Inflection Point #1: AMIAT and Turin's Waste Management (2015)
"In 2015 Iren acquires the majority of AMIAT, active in waste collection and disposal."
This wasn't just any acquisition—AMIAT was Turin's municipal waste management company. Adding it to the Iren portfolio meant the company could now manage the complete environmental services chain in its most important metropolitan area.
"The deal closed today is in line with the industrial model of the Group which intends to manage the entire waste value chain in an integrated fashion" - declared the Chairman Francesco Profumo, who then added - "the introduction of the plant into Group's perimeter, following the consolidation of AMIAT last year, is a further step towards confirming its role as aggregator in its reference area."
Key Inflection Point #2: TRM Waste-to-Energy Acquisition (2016)
The acquisition price is approximately 94.5m€. IREN Ambiente S.p.A. already owned the remaining 49% stake in TRM V S.p.A. which will now be fully controlled by Group IREN.
TRM operated Turin's major waste-to-energy plant—a facility capable of processing approximately 500,000 tonnes of unsorted urban waste annually. The acquisition will allow the Group to triple its WTE capacity, confirming IREN among the top three companies in Italy in terms of treated waste. Moreover, it creates a solid base on which to add further successful operations in the sector. Finally, the direct management of the plant will allow for the consolidation of approximately 49m€ of EBITDA.
The waste-to-energy strategy served multiple purposes: it provided a disposal solution for Turin's non-recyclable waste, generated electricity that could be sold into the grid, and—crucially—produced heat that could be fed into Iren's district heating network.
The TRM heat exchange station uses waste heat from the Turin waste-to-energy plant, with a nominal installed thermal power of about 100 MWt. This integration exemplified Iren's approach: find synergies across business lines that competitors focused on single sectors couldn't match.
Key Inflection Point #3: ACAM La Spezia (2018)
L'11 aprile 2018 si è perfezionata l'aggregazione tra Iren e il Gruppo ACAM, attivo nella provincia di La Spezia nella gestione del servizio idrico integrato, nella gestione dei servizi ambientali.
The ACAM acquisition extended Iren's footprint into eastern Liguria. A far data dal 1° aprile 2018 è entrato a far parte del gruppo IREN il gruppo ACAM, operante nella gestione del servizio idrico integrato e di igiene ambientale nella provincia di La Spezia. ACAM Acque S.p.A. svolge la propria attività , quale operatore prevalente, nel settore della gestione del Servizio Idrico Integrato (SII) presidiando tutte le fasi del ciclo idrico. La società opera in 26 comuni della provincia di La Spezia servendo circa 206 mila abitanti.
The deal included commitments to significant infrastructure investment. Saranno previsti 189,2 milioni di euro di investimenti nel settore idrico e 36,7 milioni di investimenti nel settore ambiente. These investment pledges helped secure buy-in from ACAM's 31 municipal shareholders, who joined Iren's shareholder agreement.
Key Inflection Point #4: Unieco Waste Management Division (2020)
On 19 June 2020, Iren Ambiente S.p.A., a wholly-owned subsidiary of Iren S.p.A., acquired the Enlarged Environment Division of Unieco S.C.L.C.A., whose activities are spread over a territory encompassing five Italian regions: Piedmont, Emilia Romagna, Marche, Tuscany and Puglia.
The Unieco acquisition was transformative for Iren's waste management business. "This transaction was carried out to enable Iren to become the national leader in the selection of Corepla plastics and, prospectively, in the treatment of so-called plasmix, i.e. heterogeneous plastics that currently do not have an outlet in the recycling market downstream of separate collection."
Circular Plastic, one of the largest plants in Italy for the selection and storage of plastic waste, was inaugurated in Borgaro Torinese, in the province of Turin. Built by Amiat and managed by I.Blu, two Iren Group companies active in the environmental and circular economy supply chain, the plant has an annual treatment capacity of approximately 100,000 tonnes. It was created with the most modern technologies in the sector.
Key Inflection Point #5: EGEA - The Rescue and Relaunch (2024-2025)
The EGEA acquisition deserves special attention because it illustrates Iren's role as a "national champion" that can rescue distressed regional utilities.
Iren SpA has today completed the acquisition of a 50% stake in the share capital of Egea Holding S.p.A., a company to which the operating branches of EGEA Spa, EGEA Commerciale Srl and EGEA Produzioni e Teleriscaldamento Srl were previously transferred. The transaction was closed, in line with what was communicated on 30 March 2024, following the occurrence of the suspensive conditions set out in the investment agreement, for a total value of 85 million euros.
"Today, a long and challenging journey, in which we have believed from the very beginning, has been successfully completed: the EGEA operation has a strong strategic rationale for Iren, because it allows us to accelerate the Group's growth in all businesses, to enhance economies of scale and to further expand Iren's presence in the reference territories."
"With the purchase of the remaining capital of Egea Holding we acquire 100% of the company and the first phase of the relaunch of the new Egea is concluded: we have successfully restructured a group that until a year and a half ago was in great financial difficulty and are relaunching it with a solid industrial development plan. We made the idea of an industrial project prevail, thanks also to the collaboration of stakeholders, institutions, and the territory."
Iren S.p.A. has acquired full control of Egea Holding by purchasing the remaining 47.23% stake from MidCo 2024 Srl for a total of 74.8 million euros, with an additional 4 million euros for Capo dell'Acqua's shares.
EGEA has an estimated EBITDA, at the end of 2024, of 55/60 million euros (up from initial estimates) and a net financial position recorded at 30 April 2024 (the contractually established verification date), of 175 million euros.
The EGEA deal followed Italian crisis resolution procedures, representing Iren's ability to serve as a consolidator of troubled regional utilities while preserving local employment and service continuity.
VI. Business Model Deep Dive: The Four Business Units
Iren's organizational structure reflects its multi-utility heritage: four distinct business units, each led by a dedicated subsidiary, coordinated through the holding company in Reggio Emilia.
Iren Energia - The Power Engine
Iren Energia, parent company of the "Energy" Business Unit, is the company of the Iren Group that produces, distributes and sells electricity, gas, products and services for public entities, companies and individuals.
The energy portfolio is diversified across generation technologies. The Energy BU has an installed electric power capacity of 3,286 MW in electric power mode and 3,114 MW in cogeneration mode, and a thermal power capacity of 2,350 MWt.
But Iren Energia's crown jewel is district heating. The district heating network, designed and managed by Iren Energia, is developed in the cities of Turin (metropolitan area with the municipalities of Turin, Beinasco, Collegno, Grugliasco Moncalieri, Nichelino and Rivoli), Reggio Emilia, Parma, Genoa and Piacenza, for a total of 96 million mÂł heated and about 900,000 inhabitants served.
The Turin DH system is the largest one in Italy and one of the largest in Europe. Turin DH network currently serves more than 500,000 people, with a network extent larger than 6800 km of dual piping and about 640,000 residents served.
With the heat produced by the cogeneration plants in Moncalieri and North Turin and the waste-to-energy plant TRM, a volume corresponding to more than 57% of the total potential volume is served; thus, Turin is the most district-heated city in Italy and one of the most district-heated metropolises in Europe.
District heating creates a significant competitive moat. Once buildings are connected to the network, switching costs are substantial—disconnection requires reinstalling alternative heating systems. More than 90% of the energy fed into the network is produced by cogeneration plants, an outstanding figure achieved through the use of heat accumulators installed in power plants and along the network.
IRETI - The Networks Foundation
IRETI, parent company of the "Networks" Business Unit, is the Iren Group company that manages the distribution of electricity, gas and water in an integrated and widespread manner throughout the country.
The Networks business unit operates the regulated infrastructure that forms the foundation of Iren's business model. Regulated Asset Base (RAB) growth has become a strategic priority. The investment plan provides for 2.8 billion euros aimed at increasing the efficiency and quality of services with strong growth in the RAB, which will reach almost 4.5 billion euros in 2030.
It distributes electrical energy through 7,872 kilometers of medium and low voltage networks to approximately 729,000 connected users; and natural gas through its network of approximately 8,160 kilometers of high, medium, and low-pressure pipes to approximately 738,000 customers. The company also operates integrated water cycle, which includes 20,358 kilometers of pipeline networks that serve 2.9 million residents.
Iren Ambiente - The Circular Economy Engine
Iren Ambiente, parent company of the "Environment" Business Unit, is the Iren Group company that, in the Piedmont and Emilia Romagna regions, carries out the coordination and management of urban sanitation, the integrated waste cycle and the renewable energy sector.
The Waste Management BU serves a total of 552 municipalities with about 4.48 million residents in its operational areas. The integrated waste cycle is mainly made up of 4 waste-to-energy plants (TRM in Turin, Polo Ambientale Integrato (PAI) in Parma, Tecnoborgo in Piacenza and FOCI in Siena), 4 active landfills, 431 equipped technological stations and 60 plants including sorting, storage, recovery, biodigestion and composting.
The environmental services strategy emphasizes circular economy principles. The Circular Plastic facility represents this approach at scale—The plant, for the construction of which 45 million euros were invested, stands on an area of 77 thousand square meters of surface area and is capable of treating loose waste derived from the separate collection of plastic and mono/multi-materials. Circular Plastic includes 130 conveyor belts equipped with 22 optical readers capable of recognizing and dividing 17 types of polymers and plastics.
Iren Mercato - The Customer Interface
Iren Mercato, parent company of the "Market" Business Unit, is the Iren Group company operating in the electricity, gas and district heating marketing sector. Supply and marketing of electricity, gas, district heating, trading.
The Market business unit faces both opportunity and challenge from Italian energy market liberalization. Analysts of Equita sostengono che "l'abolizione del mercato della maggior tutela è un elemento leggermente positivo per le utilties A2A, Iren, Hera, Acea". Similmente, la banca Intermonte pensa che la liberalizzazione "dovrebbe rappresentare un'opportunità di accrescere la base clienti per local utilities come A2A, Hera e Iren".
VII. Industrial Plan 2024-2030 & Future Strategy
The Strategic Vision
Investments of 8.2 billion euros are planned to support an EBITDA of around 1.8 billion euros in 2030. This increase is supported by organic growth, driven by the regulated grid infrastructure business which will reach 4.5 billion euros in RAB, the realisation of 1.2 GW of new renewable capacity, the development of waste treatment and disposal plants, and the increase of the customer base to 2.6 million customers.
An 8.2 billion euro investment plan over 7 years, 60% of which will support the development of all the Group's business lines, based on projects with low execution risk, high predictability of results and a high degree of flexibility. Iren aims to a strong EBITDA increase, 1.8 billion Euro in 2030, with an annual growth rate of 6% and a solid financial profile.
Investment Allocation
The capital allocation strategy prioritizes regulated businesses—a defensive posture that reflects management's view on where risk-adjusted returns are most attractive.
The business plan update envisages a gross investment of 8.2 billion euros, of which 60% relates to development investments and 40% to maintenance.
29% of grid investments are earmarked for the electricity distribution in order to allow the evolution of the infrastructures, adapting them to be more resilient with respect to climate change, to support higher capacities due to the electrification of consumption, continuously pursuing operational efficiency. 13% of network investments are earmarked for gas distribution, in particular aimed at maintaining the current infrastructure in the target territories, completing the pipeline replacement plan and making them ready for the distribution of hydrogen mixtures.
External Growth & Synergies
External growth: +95 million euros in EBITDA, mainly due to the consolidation of EGEA and Sienambiente (the latter already consolidated from 1 January 2024). Synergies: reinforcement of the target to 2030 (approximately 130 million euros) linked to initiatives to rationalise activities, reduce external costs and other specific projects.
Human capital will be maximized thanks also to about 2,400 new hires.
Recent Financial Performance
Reggio Emilia, 13 November 2025 - Today, the Board of Directors of IREN S.p.A. approved the consolidated financial statements at 30 September 2025. Luca Dal Fabbro, Chair of the Group, said: "The results for the period are very positive, reflecting the efficacy of our strategy and the quality of our management, marked by a 9% growth in EBITDA and a 12% increase in net profit."
We uphold the guidance for the current financial year, predicting—as previously anticipated—a more moderate growth in the remaining part of the year. In particular, we expect a 2025 EBITDA of Euro 1,350 million.
Net Financial Indebtedness stood at Euro 4,287.4 million as of 30 September 2025, an increase of Euro 204.7 million compared to 31 December 2024. Regarding this, the operating cash flow amounted to Euro 566 million, almost fully covering the technical investments made, amounting to Euro 613 million, while the Euro 500 million raised through the hybrid bond issuance was, as planned, fully utilised for the financial investments for the period, amounting to Euro 511 million.
VIII. Leadership and Governance
Luca Dal Fabbro: The ESG-Focused Chairman
Luca Dal Fabbro è stato nominato Presidente di Iren il 21 giugno 2022 per il triennio 2022-2023-2024. Da allora mette a servizio dell'azienda le sue esperienze in ambito di economia circolare e transizione energetica.
Born in Milan on February 8, 1966, after graduating in Chemical Engineering from La Sapienza University in Rome and a master's degree in International Politics from ULB at the Centre des Etudes Internationales et strategiques in Brussels, he studied Advanced Management at the MIT Sloan School in Boston. He has extensive international management experience in the sectors of industry, finance, energy and sustainability. He has been Deputy Chairman of Snam, Executive Chairman of Renovit, CEO of ENEL Energia and E.On Italia, and a board member of Terna.
Luca Dal Fabbro è inoltre Vice Presidente Vicario di Utilitalia, Vice Presidente del Circular Economy Network nonché Presidente dell'ESG European Institute. Tra i ruoli apicali ricoperti spiccano quelli di Amministratore Delegato di Enel Energia, Amministratore Delegato di E.ON Italia, membro del CdA di Terna SpA e Presidente Esecutivo di Renovit.
Dal Fabbro's appointment reflected the board's view that ESG credentials and sustainability expertise would be critical for Iren's next phase of development. His background at major energy companies (Enel, E.ON) provided operational credibility, while his academic work on circular economy positioned him as a thought leader on ecological transition.
The Current Executive Team
The new Board of Directors of Iren S.p.A., which met today, after having acknowledged the appointment by today's Shareholders' Meeting of Luca Dal Fabbro as Chairman of the Board of Directors, proceeded to appoint the Vice President, in the person of Moris Ferretti, and the Chief Executive Officer and General Manager, in the person of Gianluca Bufo.
Gianluca Bufo holds a degree in Mechanical Engineering from the University of Padua. Within the IREN Group, he holds the position of Director of the Market Business Unit and Managing Director of IREN Mercato S.p.A. (since July 2015) and Director of Energy management (since 2023).
The promotion of internal talent reflects a philosophy of institutional continuity. "Over the last few years, the women and men of Iren have given great proof of their professionalism and managerial skills," declared Luca Dal Fabbro. "We have found ourselves having to compensate twice, for different reasons, for the lack of a CEO, demonstrating with facts that the strategy outlined for the Group's businesses is effective and that the management team is cohesive and driven by the challenging objectives we have set ourselves. The choice of a manager such as Gianluca Bufo, on the back of a strategy of enhancing the value of internal professionals, will allow us to run even faster towards the achievement of the Plan's targets."
The Municipal Shareholder Structure
The Iren share capital consists of 1,300,931,377 shares, of which 55.69% held by public shareholders, 1.37% treasury shares, and the remaining 42.94% the free float held by institutional or retail investors.
The majority municipal ownership creates both stability and constraints. Public shareholders want reliable services, local employment, and long-term infrastructure investment—objectives that align well with utility business models. But they also resist dilution and may oppose aggressive M&A that could reduce their influence.
At 31 December 2021, the ordinary shares of Iren conferred by 93 Public Shareholders (Finanziaria Sviluppo Utilities, Finanziaria CittĂ di Torino Holding, Metro Holding Torino, Emilian Shareholders and Shareholder of La Spezia) to a Shareholders' Agreement aimed at guaranteeing unity and stability of direction, also through the use of the increased voting rights.
IX. Playbook: Business & Investing Lessons
1. The Municipal Heritage as Foundation
Iren's public ownership roots created something valuable: a business culture oriented toward long-term infrastructure investment rather than short-term financial engineering. When your largest shareholders are municipal governments that have been running utilities for over a century, quarterly earnings pressure takes a back seat to generational capital allocation.
The company's history shows how public ownership can be compatible with—even supportive of—capital market discipline. The stock exchange listings of the 1990s and 2000s introduced financial reporting standards and investor scrutiny without fundamentally changing the business model.
2. The "Roll-Up" Strategy in Fragmented Essential Services
Iren's growth since 2010 follows a classic roll-up strategy: systematically acquire smaller regional utilities, integrate them onto shared platforms, and extract synergies. The ACAM, Unieco, and EGEA acquisitions all followed this pattern.
The strategy works because of fragmentation. As part of 2015 budget negotiations, the government envisions greater regional consolidation to create fewer, more efficient water utilities led by potential national champions such as Acea SpA, Gruppo Hera, Iren Group, and A2A. Italy currently hosts over 100 regional water utilities.
Each acquisition brings new territories, new regulatory relationships, and new customer bases—but the back-office functions, IT systems, and procurement relationships can be consolidated. The EGEA integration explicitly targeted these synergies: "The exercise of the call option will allow us to work on growth, aiming at the synergies deriving from joining a large group like ours. Since August 2024, we have been working tirelessly on Egea as a single team of people, restructuring the company's processes and evolving them to those of the Iren Group."
3. Regulated vs. Unregulated Mix
Iren maintains deliberate balance between regulated network businesses (water, electricity distribution, gas distribution) and market-exposed activities (energy trading, customer sales). A balanced mix of regulated and quasi-regulated activities and unregulated activities, and a strong integration between upstream and downstream activities.
The regulated businesses provide predictable cash flows tied to RAB growth and regulatory returns. The unregulated businesses offer higher growth potential but carry commodity price and competitive risk. The current industrial plan explicitly tilts toward regulated businesses—80% of cumulative investments are focused in regulated sectors.
4. Vertical Integration in Utilities
Iren's value creation depends heavily on linkages between business units that competitors focused on single sectors cannot replicate:
- Waste-to-energy feeds district heating: The TRM plant's heat goes directly into Turin's district heating network
- Water treatment enables energy recovery: Biogas from wastewater treatment generates electricity
- Customer relationships span multiple services: A household might receive electricity, gas, water, and waste collection from Iren subsidiaries
These integrations create switching costs and allow cost allocation across shared infrastructure.
5. M&A Integration Capabilities
Iren's track record of successful acquisitions reflects developed integration capabilities. "The model is historically characterized by the valorization of the acquired companies' resources, close involvement of suppliers and partners, attention to communities and the ability to invest in the territory."
The EGEA acquisition demonstrated this capability under pressure—taking on a distressed company in crisis resolution and stabilizing it within months.
X. Competitive Landscape and Strategic Analysis
The Italian Multi-Utility Oligopoly
Enel SpA, Headquarters Italy, 60,584 employees, Revenue $80.0B. Hera SpA, Headquarters Italy, 10,241 employees, Revenue $13.9B. A2A SpA, Headquarters Italy, 14,777 employees.
Iren operates in what is effectively an oligopoly of Italian multi-utilities. Hera Group can be compared to the other listed Italian multi-utilities. Comparison on operating data by business (waste, water, gas and electricity) also highlights the market shares.
Hera (Bologna-based): The largest integrated waste processor in Italy, with strong positions in Emilia-Romagna and northeastern Italy. In 2024, Hera was the number one Italian domestic operator in terms of the amount of waste treated (8.5 million tons).
A2A (Milan/Brescia-based): The largest multi-utility by some measures, with dominant positions in Lombardy. Strong in electricity generation and waste-to-energy.
Acea (Rome-based): Dominant in central Italy, particularly in water services around the capital.
Porter's Five Forces Analysis
Threat of New Entrants: LOW - Massive capital requirements for infrastructure (billions in RAB) - Long-term municipal concessions (often 20-30 years) create entry barriers - Regulatory complexity deters foreign entrants - Scale economies in networks and customer acquisition favor incumbents
Bargaining Power of Suppliers: MODERATE - Energy procurement from wholesale markets has moderate power - Technology suppliers (smart meters, treatment equipment) face competition - Labor is somewhat specialized but not critically scarce - Capital markets access is strong for investment-grade utilities
Bargaining Power of Buyers: LOW to MODERATE - Essential services with limited alternatives for end consumers - Regulated tariffs limit pricing power but ensure stable revenues - Large industrial customers have some negotiating leverage - Municipal shareholders influence strategic priorities
Threat of Substitutes: LOW to MODERATE - District heating faces competition from individual heating systems (heat pumps, gas boilers) - Electricity distribution has limited substitutes (except distributed generation at the margin) - Water services have no practical substitutes - Waste services face some competition from private collectors in commercial segments
Competitive Rivalry: MODERATE - Geographic territories are largely non-overlapping among major multi-utilities - Competition intensifies only at territorial boundaries - M&A creates consolidation pressure rather than direct rivalry - Customer acquisition in liberalized energy markets is the primary competitive arena
Hamilton's 7 Powers Framework
1. Scale Economies: âś“ Strong Iren benefits from scale in procurement, IT systems, and regulatory compliance. Larger customer bases and asset bases enable cost sharing.
2. Network Economics: âś“ Strong Physical networks (pipes, wires) create strong network effects. Once infrastructure is built, marginal cost of additional connections is low.
3. Counter-Positioning: ✗ Weak Iren's business model is not counter-positioned against competitors—all major Italian utilities pursue similar strategies.
4. Switching Costs: âś“ Moderate to Strong District heating connections create high switching costs. Water and waste collection are typically monopoly concessions. Only energy retail has meaningful churn.
5. Branding: âś— Weak Utility branding creates limited premium pricing power. Services are fundamentally commodity-like.
6. Cornered Resource: âś“ Moderate Long-term concessions and territorial exclusivity represent cornered resources. However, concessions can expire and be re-tendered.
7. Process Power: âś“ Moderate Integration capabilities and operational expertise create process advantages, but these can be replicated by well-managed competitors.
XI. Key Performance Indicators for Investors
For long-term fundamental investors tracking Iren, three KPIs deserve particular attention:
1. Regulated Asset Base (RAB) Growth Rate
The RAB represents the regulatory value of Iren's network infrastructure, upon which regulated returns are calculated. The increase of 300,000,000 in RAB plus 11% was achieved thanks to the contribution of 50% of the investments made in past years and the remaining 50% for the regulatory revaluation linked to the application of the deflator.
RAB growth directly drives earnings in the Networks business unit. The industrial plan targets €4.5 billion RAB by 2030. Tracking actual RAB growth against this target provides insight into capital deployment efficiency and regulatory relationship health.
2. Net Debt/EBITDA Ratio
The stable outlook reflects the expectations of maintaining the net debt/EBITDA ratio of no more than 3.5x and management's commitment to maintaining the current rating judgment and careful financial discipline.
This leverage metric matters for two reasons: credit rating preservation (both S&P and Fitch have Iren at BBB) and M&A capacity. The company currently operates around 3.2-3.3x, providing headroom for opportunistic acquisitions while maintaining investment-grade status.
3. District Heating Connected Volume Growth
District heating represents Iren's most differentiated competitive advantage and highest-margin business. Iren Energia has the most extensive district heating network at national level (1,146 kilometres of double pipe network).
Growth in connected cubic meters indicates network extension, building conversions, and market penetration. The business has natural expansion potential as urban areas densify and decarbonization mandates make district heating more attractive.
XII. Risk Factors and Regulatory Overhangs
Regulatory Risk
Italian utility regulation has been generally favorable, but political winds can shift. The tariff-setting process for water, electricity distribution, and waste services involves ARERA (the national regulator) and can be influenced by political pressure on consumer prices.
Concession Expiry Risk
Municipal concessions for water and waste services eventually expire and must be re-tendered. While incumbent operators typically have advantages in renewals, the process introduces uncertainty. The ACAM acquisition involved precisely this dynamic—securing service continuity through corporate integration rather than competitive tender.
Energy Price Volatility
While regulated businesses provide stability, Iren's energy trading and generation activities remain exposed to commodity price volatility. The 2022-2023 energy crisis demonstrated both the upside (margin expansion during price spikes) and risk (working capital strain from collateral requirements).
Municipal Shareholder Complexity
The shareholders' agreement among 93 public shareholders creates governance complexity. Major strategic decisions require extensive consultation. The dispersed structure that enabled the original mergers also constrains rapid decision-making.
XIII. Investment Thesis: Bull and Bear Cases
The Bull Case
Structural Growth Drivers: European decarbonization mandates favor district heating, renewable generation, and circular economy investments—all Iren specialties. The company sits at the intersection of multiple secular trends.
Consolidation Opportunity: Italian utility fragmentation provides ongoing M&A targets. Iren has demonstrated integration capability and access to capital for continued roll-up.
Regulated Business Stability: 80% of planned investments target regulated sectors, providing earnings visibility and inflation protection through RAB revaluation mechanisms.
Dividend Policy: The new dividend policy envisages until 2027 a dividend equal to the maximum value between an annual increase of 8% and a pay-out of 60% of ordinary Group net income.
Credit Ratings: The rating agency Standard & Poor's Global Ratings (S&P) today confirmed the long-term credit rating of the Iren Group at "BBB" Outlook "Stable". The same rating is also attributed to senior unsecured debt.
The Bear Case
Leverage Constraints: The business plan requires €8.2 billion in investments over seven years while maintaining credit ratings. Any execution stumble or economic downturn could strain the balance sheet.
Regulatory Compression: If Italian regulators reduce allowed returns on regulated assets (as has happened in other European markets), the earnings foundation of the Networks business would erode.
Commodity Exposure: Energy trading and generation remain cyclical. The exceptional margins of 2022-2023 were exceptional—normalization is already visible in results.
Municipal Shareholder Priorities: Public shareholders may prioritize local employment and service reliability over shareholder returns. Strategic flexibility is constrained by political considerations.
Limited International Exposure: Unlike peers such as Enel, Iren is entirely domestic. Italy's demographic and economic challenges (aging population, slow growth) limit long-term market expansion potential.
XIV. Conclusion: A Century of Public Service, A Future of Ecological Transition
The story of Iren is, in many ways, the story of Italian infrastructure itself—born from municipal ambition in the Giolitti era, transformed by European liberalization, consolidated through patient M&A, and now positioned for the ecological transition.
In presenting Iren Group's 2024 results, we prepared a document that would fully reflect the Group's vision of integrating economic and sustainability dimensions, in line with the new ESRS reporting standards. It is a report that truly encompasses and comprehensively renders the absolute synergy between sustainable development, industrial development and human development. These three dimensions have guided the different forces operating within Iren in a coordinated manner, strengthening the Group's territorial presence and succeeding in bringing new development projects to life.
From the gas lamps of Reggio Emilia in 1903 to the AI-powered waste sorting systems of Circular Plastic in 2024, Iren's trajectory reflects continuous adaptation to changing technology, regulation, and social expectations. The company that began by municipalizing services from French concessionaires now positions itself as a leader in circular economy and decarbonization.
For investors, Iren represents an unusual combination: a defensive utility with growth characteristics, a public-sector heritage with private-sector efficiency, a local champion with national scale. The multi-utility model that seemed like municipal socialism a century ago now looks like sophisticated portfolio diversification.
The questions that will determine Iren's next decade are familiar to any infrastructure investor: Can management execute on an ambitious capital program while maintaining financial discipline? Will regulators continue to provide attractive returns on infrastructure investment? Can the company continue to find and integrate acquisition targets?
The answers will emerge gradually, in quarterly results and annual reports, in regulatory decisions and municipal politics. But the foundation—122 years of continuous service, deep territorial roots, and proven adaptation capability—suggests Iren will remain a significant force in Italian infrastructure for decades to come.
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